Startup! India. It’s time to move on.
Article 1/Start up Series
The Government of India has announced ‘Startup India’ initiative for creating a conducive environment for startups in India. The various Ministries of the Government of India have initiated a number of activities for the purpose. The very purpose of that is to attract talented young generation as well as seasoned professionals to the business/corporate environment of India. The said move is surely a welcome move and in this article I am trying to point out the facts and figures in simplest manner for your easy understanding
Who/What is considered as a Start up? Are you eligible?
An entity shall be considered as a Startup upto 5(Five) years of the date of its Incorporation/registration if that entity is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. If the turnover of the company crosses Rs. 25 Crore during the said period the said entity will lose the “Startup “Status. If a new entity is being formed as a result of restructuring or splitting up of an existing business entity, then that new entity is not eligible for the benefits of a Startup.
Its Simple to be a start up !. Just remember that.
If your entity is coming under the above criteria, then a simple formality will lead your entity to “Startup” status. You have to submit an application through Mobile app/portal of the Department of Industrial Policy and Promotion along with following documents.
recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator established in a post-graduate college in India; or
a letter of support by any incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation; or
a recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India; or
a letter of funding of not less than 20 per cent in equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or
a letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or
a patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of business being promoted.
Definitions of the terms used in the article
Entity means a private limited company (as defined in the Companies Act, 2013), or a registered partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2002).
Friends, I will be writing a series of Articles on this subject and I believe that the same will be beneficial to you. End of Article 1 of Startup Series